Gujarat Alkalies – Rectangular Breakout above 381 & retest Done
Entry: above 405 ie CMP
SL - 355
TRGT1 - 800
TRGT2 - 1290.9
DURATION - 2 Years
All numbers are weekly based
Bussiness model : Company produces Caustic Soda Lye, same is used in manufacturing of pulp and paper, alumina, Soap and Detergent petroleum products, few chemical production, water treatment, textiles, metal processing, mining, glass making.
Co was making around 690 net profit pre covid. Even at 10x PE Co should be valued around 6900 crs. Hence traget1 of around 800
Debt to equity : 110 crs debt vs 4771 crs reserve
Debt can be paid back with 3 months profit. So assume Co is debt free.
Net profit and sales continues to grow at stable rate only exception was 2020 Covid Year
Cash flow consistent over past 12 year.
Dividend yeild 1.9%
Book value 660 vs Market price 420 (0.63 times)
Promotor holding 46.28 above average
Volume accumulation seen on daily chart with rectangular breakout of 11 months.
Stock is currently in pull back mode after its breakout so it's a good buy around 405 or higher whenever stock gives green candle on daily chart.
There r few strong resistance (marked on chart black lines), so I'm not expecting quick profit booking on this script
Disc. : Views Shared for Education Purpose only. Consult your Financial Advisor before taking any position.
SL - 355
TRGT1 - 800
TRGT2 - 1290.9
DURATION - 2 Years
All numbers are weekly based
Bussiness model : Company produces Caustic Soda Lye, same is used in manufacturing of pulp and paper, alumina, Soap and Detergent petroleum products, few chemical production, water treatment, textiles, metal processing, mining, glass making.
Co was making around 690 net profit pre covid. Even at 10x PE Co should be valued around 6900 crs. Hence traget1 of around 800
Debt to equity : 110 crs debt vs 4771 crs reserve
Debt can be paid back with 3 months profit. So assume Co is debt free.
Net profit and sales continues to grow at stable rate only exception was 2020 Covid Year
Cash flow consistent over past 12 year.
Dividend yeild 1.9%
Book value 660 vs Market price 420 (0.63 times)
Promotor holding 46.28 above average
Volume accumulation seen on daily chart with rectangular breakout of 11 months.
Stock is currently in pull back mode after its breakout so it's a good buy around 405 or higher whenever stock gives green candle on daily chart.
There r few strong resistance (marked on chart black lines), so I'm not expecting quick profit booking on this script
Disc. : Views Shared for Education Purpose only. Consult your Financial Advisor before taking any position.
Trade active:
Trgt1 achieved
book Part Profit and trail Stop loss for Target 2
book Part Profit and trail Stop loss for Target 2